the social media path to customer engagement
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The Social Media Path to Customer Engagement. Paul Gillin Author, The New Influencers. Cancelling AOL. June 20. Vincent Ferrari. June 21. June 23. June 24. June 26. July 14. Today. AOL Hell. Philipp Lenssen. Paige Heninger & Gretchen Vogelzang. Steve Hall. - PowerPoint PPT PresentationTRANSCRIPT
The Social Media Path to Customer Engagement
Paul GillinAuthor, The New Influencers
Cancelling AOL
AOL HellJune 20
June 24
June 26
June 21
June 23
July 14
Today
Vincent Ferrari
Meet the new influencers
Steve Hall
Philipp Lenssen
Paige Heninger &Gretchen Vogelzang
New Influencers are passionate – both pro and con
Brand Engagement
Des
ire
to In
flu
ence
Oth
ers
Reject
Pa
ss
ive
Favor
Ac
tiv
eHaters
EnthusiastsCritics
Lovers
Dismissers
MainstreamSkeptics
Followers
Traditional influencersAuthoritative 3rd parties, community leaders, press, gov’t.
New Influencers
Source: Sean Moffitt, BuzzCanuck
Dell Hell
“Dell said that it found no pattern of battery failure and that the Pennsylvania incident publicized by the Inquirer Web site was caused by a chip problem and not batteries.”
NY TimesJuly 10
June 24
More Dell Hell
“Please remove the posting located at the following link: http://consumerist.com/consumer/insiders/22-...It contains information that is confidential and proprietary to Dell.”
June 14, 2007
Dell's 23 Confessions Now's not the time to mince words, so let me just say it... we blew it…. instead of trying to control information that was made public, we should have simply corrected anything that was inaccurate. We didn't do that, and now we're paying for it.
June 16, 2007
But today Dell is a convert
"These conversations are going to occur whether you like it or not…You can learn from that. You can improve your reaction time. And you can be a better company by listening and being involved in that conversation."
Michael Dell, 10/17/2007
Consumers in control
Whom do consumers trust?
30%
37%
49%
50%
60%
63%
69%
75%
83%
Blogger review
Chat/discussion comments
Editor reviews at opinion site
Online consumer sites
Reviews on company site
Expert review
Company website
Media review
Opinion of a friend
Percent who trust each souce
Source: Forrester Research, Jan., 2007
Seeds of change Web 2.0 is the greatest experiment in group
self-organization in history Sophisticated patterns of influence
emerging Personal publishing will completely disrupt
the mainstream media; many won’t make it Everyone is now a potential content
producer; this will fundamentally change the way businesses market and sell
Why now?
Cheap technology Fast networks Google “The Long Tail”
Source: Pew Research
It’s now cheaper to keep information than it is to throw it away. It’s also easier to publish information than ever before. This is an explosive new combination.
Let’s get small
Engaged customer Technology enabled Well-informed Opinionated Focused Passionate
Mainstream media economics
Rooted in mass markets Delivery network is
differentiator High reader/viewer
retention rates; lack of customer choice
Fat margins, high fixed cost
High barrier to entry
Social media economics
Rooted in small markets Delivery is cheap and
outsourced Limitless choice;
retention driven by content
Fat margins, low fixed cost
No barrier to entry
Media revolution
Intentions ≠ Reality…yetWord-of-mouth marketing is expected to surpass $1 billion in 2007, making it one of the fastest-growing alternative media formats. In a new research report, PQ Media also predicts that spending on word-of-mouth marketing will grow at an annual rate of 30.4%, and will hit $3.7 billion by 2011.
MediaPost, 11/6/2007
•58% of marketers have implemented user-generated content or reviews.
•31% have implemented a blog.
•25% have implemented RSS feeds.
Coremetrics, Nov. 2007
81% of all respondents project that by 2012 they will spend at least as much on conversational marketing as traditional marketing.
Society for New Communications Research, Oct., 2007
Tap in
Action: Listen to the conversation
Tools: Google, Technorati, Bloglines, Facebook
Objective: Find out what’s being said; learn the language and the culture
Result: Understand
Online tools
Engage
Action: Talk to the influencersTools: Comments, groups, blogs, “friends”
Objective: Identify brand advocates; contain and educate critics
Result: Influence the conversation
Leverage existing communities
Sends high-end cell phones to bloggers
No strings attached
All reviews indexed on Nokia site
Sixth campaign using this approach
Nokia
Recruit
Action: Turn enthusiasts into promoters
Tools: Widgets, tchotchkes, access, retreats
Objective: Build low-cost virtual sales force of informed customers
Result: Brand visibility; sales leads
In summary… Social media is a great market research
tool, even if you use it for nothing else Messaging will be increasingly irrelevant Markets will become more segmented Leaders are emerging but leadership is
tenuous Content and credibility are king
Thank you!
Paul Gillin
508-202-9807
www.gillin.com
Now availablefrom Quill Driver Books
Read more and order at www.NewInfluencers.com